Early this morning, the venerable firm of Lehman Brothers, the fourth-largest investment firm in the country, filed for bankruptcy. The global business community is girding up for major financial shifts, uncertainty and a tumbling stock market.

Monday September 15, 2008, 4:50 am
While Merrill Lynch put itself on the block and was sold, Lehman had no alternative this morning as it faced total failure. The ripples from sale & failure of these two former stalwarts of the world financial community will likely take some time to reach the peak of influence and the shake-out could bring more economic woes for millions.

Monday September 15, 2008, 6:07 am
Keep the cupboard full Granny said, how right was she? Just make sure you have plenty of organic seed to put in, for your crops of vegetables. For we are in for a rough ride my friends. Bless you all with wisdom. Thank you Father for the lessons we have to learn. Amen. Janet

Monday September 15, 2008, 6:33 am
I for one am getting tired of the corps. asking to be bailed out by the government for their greedy business dealings. Where were the regulators in their companies when people were getting the mortgages that they shouldn't have been able to obtain? I know that it is us (the 99% middle and lower classes) who will 'pay' in the end, but since we are going to PAY anyway, why not have some of the big boys go down with us? Maybe they'll develop some ethics as they try to go back up the economic ladder! Thanks, Regina.

Monday September 15, 2008, 7:50 am
Elizabeth Kübler-Ross defined 5 stages of imperial collapse. Financial collapse of banking institutions is the first stage. While I don't know if our society would reach the dire states she describes, I believe it is possible and therefore this article is worthy of your time to read. If you don't have the stomach for it or want a nicer version, don't visit this link. Keep in mind, there are many nuances that could play out and alter these stages to fit the US and our particular situation.

My own thinking is that middle class America is going to find out what it's like to live in a ghetto or even homeless where many have wondered why 'those people' chose to live that way - like crabs trying to get out of a pot of boiling water, yet none able to escape. Having grown up in generation after generation of ignorance and poverty, I have spent my adult life raising myself from that nightmare, and knowing this day might some day arrive again.

About 10 years ago, I saw this collapse coming because I follow the economic experts outside of the Wall Street gang, follow trends, read the major WSJ, WaPo, read alternative and conspiracy news and compare with mainstream, conservative outlets, and observe the lifestyles of family, friends and society. I don't believe the religious fanatics with the 'Armaggedon' view...this is a man-made collapse and was 'allowed' to happen. The rich elites have purposely sucked the blood out of Americans and have an escape plan with our money and resources. We are left holding the bag and the repercussions are being felt worldwide.

Janet is right: prepare. Prepare as best you can with what resources you have. No need to panic as preparedness and awareness is half the battle. The complete collapse could occur within a couple of years, or it could ride out for 20-30 years. We have a window of time. If we are able to ride this out without too much disruption of our normal lives, the preparation will not be wasted as we should have been doing this all along - think natural disaster preparedness. Thank you, Cate!

Monday September 15, 2008, 7:52 am
Well I have been calling this a depression and by the definitions that I have read this qualifies i am not going to wait on some Bullsh*& leader to tell me what I see-google the definition and see for urself-Janet ur right and Cate thanx 4 info

Monday September 15, 2008, 9:03 am
As of this day, September 15, 2008: The waves of this American economic peril upon Wall Street, has swept the Asian and European stock markets, and they sank sharply in response. This wave-action of Globalization is a repeating dynamic, which inevitably returns upon American soil, and thus creates another wave to go forth! A vicious cycle.

Monday September 15, 2008, 11:26 am
Noted, thanks Cate. As I mentioned in my last comment this is just the tip of the infamous iceberg. The worst is yet to come.
McCain's brain went on holiday as he said he still believes the economy is still strong. Hmmm, he must be looking in his own bank account for him the economy is strong, but for the rest of us we're on the Titanic, and it's sinking very quickly...

Monday September 15, 2008, 4:15 pm
Here's the latest from Money and Markets:

"With the Dow plunging 504 points today ... with Lehman dead and Merrill sold off ... with AIG on the brink and Washington Mutual not far behind ... you'll soon hear the Wall Street pundits arguing that this is the "climactic capitulation" that will end the decline. Don't fall for it!

In reality ...

* The Dow is still not far from its all-time peaks, with a lot further to fall. Our forecast is unchanged: 7,200 on the Dow.

* The recession is still in its early stages. Expect outright contractions in GDP in the coming quarters, and despite a lot of talk and some action, don't count on the government to turn it around any time soon.

* America's oversized debt pyramid has just begun to wind down. It could take several years to clean up the mess.

Here's What's Happening and What We See Coming Next ...

The financial failures you've seen so far are just the tip of the iceberg ...

* Lehman Brothers is merely the first to fail. Expect more in the weeks ahead, possibly starting with those that have the smallest capital cushion.

* Bank of America is making a horrendous mistake. It's already bogged down with its earlier purchase of Countrywide Financial, a classic pig in the poke. Now, on top of that bad move, it's taking on all the debts and risks of Merrill Lynch.

* AIG, the biggest insurance firm in the country, is desperately trying to shore up its balance sheet after suffering $18.5 billion in losses over the past three quarters. It's planning to dump assets, raise capital, and asking the Federal Reserve for a $40 billion bridge loan. Don't be surprised if AIG is taken over by insurance regulators in the days ahead. And don't be shocked if more insurance company failures follow.

* Look out for bigger financial troubles in the banking industry, including not only the names that are in the news, like Washington Mutual and Wachovia, but also at Citicorp, HSBC ... and yes ... Bank of America.

Late this afternoon, Treasury Secretary Paulson tried to inspire some confidence. But he failed as the shares in most of these companies plunged: Washington Mutual, down 27%. Wachovia down, 25%. AIG down 61%, the worst single-day stock decline for any major insurer in memory.

The market and the economy WILL recover eventually, but only after the nation's bad debts are liquidated, a process that will be extremely painful and traumatic."

Monday September 15, 2008, 7:41 pm
Thanks Cate, and also Marion for an excellent contribution.
As was the case in the financial collapse of the 1920-30's, it was engineered, so is this collapse.
This is just a case of "social engineering", so that the middle class will slip down to join the poor, don't even ask about the retired, sick or the poor. Many business, companies-large and small will fail, to be gobbled up to make huge corporations, even bigger. Wages will not increase....if you can get work.
Look at history, and what has happened in the past, nothing is new, the same families will reap truckloads of booty..... greed is good......memories are short, we are stupid, or" it won't happen to me,"syndrome reigns supreme. As a society we FOOLISHLY expect governments to look after us.......when it doesn't happen ....we can be left with no food in the pantry, and even no roof over our heads. When we vote for our elected officials, we expect that they will have our bests interests at heart, but we are being badly let down....not just in the US, but in many corners of the world.

I don't know if you realize this, but when you vote (or not) in the US, you also cast a vote for me...for other citizens of the word.... because your government has such an influence on many peoples of the world, such is the power of your economy and policies, in a more or lesser degree.We now have to watch news and reports about what is happening in the US, because it has so much affect on our lives.

Our political masters have no respect or compassion, for the voters who put them there....the old story.....how do you tell if a politician is lying????you see his lips move....
They serve them selves first, the deepest pockets and deep unelected government next, who can help them get back in, then maybe, the voter.....Their chief tools are deceit, barefaced lies, and manipulation....we forget quickly, and only see what we want to see. How we are so easily manipulated by, again,bullsh*t, lies, deception, omissions, our political parties, and last but by no means least, our religious leaders. How can they remain silent about the obvious lies and deception that has occurred with our involvement in these wars???the protection and support for the disadvantaged.. returned servicemen..the deaths on both sides in these wars.I believe in the separation of church and state, but it doesn't stop ethical issues. These are legitimate areas for our church leaders to enter and pressure for change..

The ride has started, buckle up and be prepared. You can rely only on yourself, even family and friends may not be able to help.Our extravagant wasteful way of life will finish. If this is allowed to go the full distance, it could take 10 years, as has happened in the past, to get back to where it started. There are forces that want the $US to die, and bring on the Amero....this will cause further and deeper problems..We live in uncertain times....

If we sit like blind ducks in the duck pond, expecting our governments to protect us???
forget it....it will not happen....(we finish up as grist for the mill) that is not what this scenario has been engineered for.
Research, plan, then act now....ASAP.... OR WE BECOME A STATISTIC....it WILL be difficult, but not impossible.We live in new times...maybe we need to think of new ways to survive...maybe old ways need to be resurrected....whatever is the answer, we need to start thinking and planning yesterday....ken

Monday September 15, 2008, 8:17 pm
This is a scaryworld right now. It really ticks me off that no one is listening to the failure of our government to govern. We are supporting our government, corporate and every misspent dollar that has blown on this war. And people still fail to wake up and pay attention.
Change will not begin with anyone but we the people. It is we the people that need to stop accepting this garbage as the status quo...what will be will be. If this whacko Palin gets in office you can start kissing whatever else you hold of value right into the toilet. Everything you hold dear and as your rights will suffer greatly. It is like watching the domino effect..and the whole house of cards falling apart...but when will it end...??

Monday September 15, 2008, 8:36 pm
There aren't many of the younger ones who even have a clue how to do things the old way,our fault for wanting things to be better for them.I fear the change will be much harder than when we were young and things were harder but simpler,finding vintage vege seeds, fresh meat and milk,etc is going to be a real challenge. Guess I had better dig out the Mother Earth magazines and get a quick refresher course. Lets hope we have time to down size,save and stash before the real pain starts.

Tuesday September 16, 2008, 7:10 am
Ken...You said a mouthful and I agree with you. Yes, this collapse was engineered and there are forces who could care less about us and will help themselves to the leftovers of our hard work. As several have said here, it's time to prepare. Do not expect the government to help us. Look to yourselves, your family, friends, neighbors and local communities. This is the old way, and the way societies have survived throughout history. We have simply lost that way and now must get back to it. Help others and they will most likely help you.

Many will panic, but this is not the time. It's a good idea to take an inventory of what your resources are, what you can eliminate or sell off. Streamline. Change a mindset from consumption and "my things" to a mindset of "what are my basic needs?" Our egos and competitive natures have led us to accumulate many things that will serve little to no purpose in the new American economy. Avoid buying into commercials and ads. They don't represent most of our lifestyles and are geared for you to consume more.

Marjorie is right about our younger folks not knowing how to do things the old way of being self-sufficient. This includes growing food, cooking all meals, networking with others, bartering and social skills for survival. But I think this goes for society in general as we have become dependent on the system to do everything for us. However, it will be the old and sick who will suffer the most during hard times.

During the Labor Day weekend, we were invited to several parties and a family picnic - as usual. We declined (as we have been lately) and focused on building our greenhouse so we can grow more food year-round. Several family members graduated from college last June. Rather than send gifts, we emailed 'Congratulations' ecards to them, and invited them to learn to grow food with us this summer while they were off from school. We haven't given Christmas gifts in years (other than to grandchildren), as we have put that money into our preparation plans for hard times. What I'm saying is, consider what habits and customs you have bought into that no longer serve your current needs or budget. Learn to let things go and do not apologize to anyone. But do let others understand your changes and include them in learning to do the same. This is the best gift you can give them. Honesty and practicality during these times.

We have bought into a system that makes us sick, then supplies the drugs so we are dependent on them for the rest of our short, ill lives. Consider who benefits from this. While you can, find alternative, natural methods to heal your body, exercise and strengthen yourselves. Slowly and carefully, eliminate medication altogether if you can. Think of the money you will save. Drugs do not cure the problem, they merely mask the symptoms, and generally do nothing to allow the body to heal itself. Your health is your wealth, and the greatest asset during the good or bad times. If you think you can't, please don't tell me about it. I'm just mentioning this for those who see the benefit of this and can do it.

During the days that led up to the 20s and 30s Depression, the president, media and government were telling Americans everything was fine. Business as usual. This is happening now, although the media is being a little more truthful. But Bush and McCain are saying the economy is strong, even when reality says different. Don't buy into their agendas. The economic collapse could happen tomorrow without warning, and it is predicted to be far worse than the Great Depression, because of the larger population, how spread out we are from resources when they stop, the government no longer has the funds or desire to help masses of middle class people who are hungry and poor, and the fact that our manufacturing jobs that would help rebuild America are overseas.

Don't panic. Prepare and keep to your faith, whatever it is. If you nourish your mind, body and spirit, you will know what to do when the time comes.

Tuesday September 16, 2008, 8:10 pm
& the ones to thank for all of this is G.W.B. Greenspan & the ones that have there heads in the sand.. oh I sure feel that there are really bad times ahead.. & I feel bad for the ones that think the store is the ONLY place to get food.. that don't know how to grow food or have wood heat or cann or have a woodstove (the ones in the 1920) .. we have been ready for this to happen most of our life ... ALL I CAN SAY IS bring it on & get it over with... what happens happens .. & of course US the UNITED STATES CITIZEN have to pay for there stupidity... have to go back to living off the land as our forefathers did... how many are really ready to do that ????